Software testing and development services company AppLabs Technologies has acquired IS Integration, a UK-based IT and business solutions testing consultancy, for $37 million (Rs 170 crore). On conclusion of the acqusition, the merged entity will become one of the largest providers of testing consultancy in the world with around 1,500 employees and revenue of $75 million.Sashi Reddi, CEO of Applabs, said: "The acquisition positions AppLabs to tap the growing opportunities in the testing market, which is pegged at around $13 billion globally. The merger will result in increased marketshare, global footprint and improved resources apart from increased customer base."The transaction is partly funded by UTI Bank, Singapore, partly through debt and the remaining through stock. He, however, did not provide a break-up of the funding. AppLabs is planning to employ an additional 600 professionals by the end of the year increasing its staff strenght to over 2,000. Sashi Reddi will continue as CEO of the new entity. Adam Ripley, co-managing director of IS Integration, will become Senior VP of Marketing for AppLabs and Clive Grummett, co-managing director of IS Integration will take up the position as senior VP of AppLabs, Europe.This is the second acquistion by AppLabs as the company had acquired KeyLabs, a company into certification testing and large scale performance testing, last year for $7 million.AppLabs had received an investment of $10 million from Sequoia Capital in June this year.Updated at 1350 hrs: AppLabs Technologies, a US-based software testing and development services company with a centre in Hyderabad, has acquired IS Integration, a UK-based IT and business solutions testing consultancy, for $37 million (nearly Rs 170 crore)."The merged business will create the largest global provider of testing consultancy with a combined staff base of approximately 1,500 employees, and a forecasted revenue of $75 million and profit of $8 million for the year ending March 2007," an AppLabs statement issued in Hyderabad said.The transaction is party funded by UTI Bank, Singapore, the release added.The news follows the June 2006 announcement that AppLabs had received $10 million funding from Sequoia Capital India. The investment in AppLabs total $17 million, one of the largest investments Sequoia has made in an Indian company.AppLabs is headquartered in Philadelphia, Pennsylvania and maintains state-of-the-art testing centers in London, Utah and Hyderabad. (PTI)
